Stop it at the source: Dealing with the problem of counterfeiting, Part V

The next time you send a substandard product to the scrap heap, think about where it’s going to end up. Production waste is a prime source of defective goods that are passed off as the real thing.

Waste centers and reclamation sites are prime targets for individuals trading in counterfeit goods. In some cases, inferior goods can be repaired, remarked, and sold as new. In the electronics industry, components that have been welded to printed circuit boards are pulled off the boards, repackaged and sent back into circulation. Sometimes these products fail in the field; other times they are returned to the supplier as “defective.” Many suppliers end up absorbing the cost of replacing defective goods.

Managing waste at the front end is one way to thwart counterfeiting.

·If you outsource your waste disposal, ask for proof that damaged and unusable products are destroyed or appropriately disposed of.

·If that’s not feasible, donate those products to a charity. This way, they won’t be diverted back into the supply chain.

Stay Connected With Us

Subscribe to Newsletter

Real Business Owners,

Real Business Advice!

Sign up for practical, real-world solutions from successful business owners delivered to your inbox each Saturday morning. FREE. Over 50,000 entrepreneurs and businesses subscribe to our newsletter!